Compute the standard deviation of demand during lead time, Operation Management

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Compute the standard deviation of demand during lead time

The daily demand of a product can be specified by a normal distribution. Its average daily demand is 25 units with a standard deviation of 3 units. The lead time for this calculator is very stable at 7 days. Compute the standard deviation of demand during lead time, and determine the safety stock and statistical reorder point that result in 5% stockouts.

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Operation Management: Compute the standard deviation of demand during lead time

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Operation Management: Compute the standard deviation of demand during lead time

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